Source: Air China Ltd., ChinaScope Financial (Data)
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Air China Ltd. released its first-quarter
financial report on April 26, showing that net profit attributable to
shareholders of the listed company was CNY 239 million, down 85.70%
year-on-year in Q1.
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Due to higher jet fuel prices, Air China’s net
profit attributable to shareholders of the parent company went down by CNY 1.43
billion year-on-year. In addition, foreign exchange gains and investment
returns also decreased year-on-year.
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The company also announced a private placement
plan, which aims to raise CNY 1.05 billion via shares selling to the
controlling shareholder China National Aviation Holding Company (CNAH). CNY 1
billion of the raised amount will be used for two energy-saving projects and
for repaying bank loans used when the company increased its holdings in Cathay
Pacific Airways.
Both revenue growth and margins are dismal.
Key operation data indicated
a weak trend of Air China’s revenue in 2012.
